Okay, so on the off chance you haven't already heard, Paypal changed their acceotable use policy. A couple of highlights:
First and foremost, we are going to focus this policy only on e-books that contain potentially illegal images, not e-books that are limited to just text.
In addition, the policy will be focused on individual books, not on entire “classes” of books. Instead of demanding that e-book publishers remove all books in a category, we will provide notice to the seller of the specific e-books, if any, that we believe violate our policy. We are working with e-book publishers on a process that will provide any affected site operator or author the opportunity to respond to and challenge a notice that an e-book violates the policy.
In my opinion, this is the best possible outcome we could reasonably expect. And it happened because people spoke up. This is what I love about the internet, for all it's flaws, it provides a public arena in which the powerful can be held accountable for their actions, and nowadays, it's about the only tool we have to keep companies like PayPal in check.
I want to thank everyone who was involved in bringing about this outcome. Don't ever let anyone tell you you can't make a difference. You just did.
Now I'm closing my petition drive contest and I'll be announcing the final winner on that thread shortly.